We have recently completed our 3d Annual Danish IT Outsourcing (ITO) vs In-House Development Survey 2012 and are ready to share its most thought-provoking findings with you. The survey was conducted between April 17 and May 31, 2012 and was completed by the 695 Danish companies, of which 382 were IT / software development outsourcing companies and 313 – companies developing their IT solutions in-house.

Recapping the results:

Top three drivers of IT Outsourcing in Denmark:

Reduction of operating costs (OPEX)

Focus on core competences and business development

Time-to-market (TTM) acceleration

Top three most decisive factors in the choice of an ITO destination among the Danish companies are:

The available vast IT talent pool

Proficient English language skills

Low costs in general

Top three most decisive factors in the choice of an ITO partner in Denmark are:

Successful test / pilot project completion

Flexible contract terms

Positive references from industry peers

Top three challenges of the outsourced software development:

Poor communication with vendor’s project management / executive teams

Cultural difference

Lack of appropriate resources on ITO vendor’s side

Top 3 ITO business models:

Project outsourcing (fixed price / time and material)

Own software development team

Dedicated Development Center

Nearshore (close to / up to 2 time zones away from Denmark) remains the most popular outsourcing destination (cited by 47% of survey respondents, which is up 10% from 2011). Offshore (2+ time zones away from Denmark) remains the second most popular outsourcing destination (cited by almost 44% of companies, which is up 16% from last year).